Survive This Recession: Expand Your Service Portfolio

by Arthur Lazerow February 1, 2009

Do we all agree that 2009 will be challenging for home inspectors on many levels?  Most home inspectors I have talked to are expecting work levels and incomes to continue to decline. During a recent MAC-ASHI monthly “Candidate Hour,” which I moderated, we explored in-depth what services some members currently offer that others could adopt to raise their income potential.

Expanding into non-related businesses

Environmental testing was my first suggestion. I was thinking mold and radon and upselling services as opportunities are presented. Our MAC-ASHI members, as usual, were light years ahead of me. They asked, “Why limit yourself to upselling when you could entertain a dual career?” Although the ASHI Code of Ethics prohibits inspectors from performing repair work on the homes they inspect within one year of the inspection, there is no prohibition on marketing to previous clients after one year. Many experienced home inspectors have hundreds and even thousands of previous clients, so that potential market is both available and enormous.

One inspector, worried about economic conditions, has started a non-related business, performing safety inspections in homes with expectant parents or young children. He makes the requisite safety alterations, such as installing safety fencing over older rails whose pickets are spaced more than four inches apart, childproofing cabinet doors and installing gates at the top of stairs. There are numerous other housing-related, nontraditional “real estate transaction” inspection work opportunities available to home inspectors with construction skills and creative ways to use them.

Seller inspections

The other side of real estate transactions, seller inspections, has never been a major source of business, at least not in the MAC-ASHI market. Recently, a concerted effort has been made to publicize seller inspections under the banner of the Certified Pre-Owned Listing (CPOL) inspection program (www.certifiedpreownedlisting.com), originated by ASHI Affiliate InspectionDepot. CPOL made a big splash at the most recent National Association of Realtors® annual conference, and the hope is that with the slowdown in real estate sales, sellers will be motivated to present their homes in the best possible condition and will seek an ASHI home inspection for assistance. Every ASHI member should be looking at seller inspections for immediate gratification.

Code inspections

The subject of code inspections was raised. Becoming ICC-, IRC- or BOCA-certified and becoming trained in dispute resolution opens possibilities for new construction dispute inspections, expert court testimony, arbitration and mediation work. Expanding into commercial and industrial inspections after fine-tuning an inspector’s knowledge base through one of several existing courses, such as Carson Dunlop’s course on commercial structures, is another alternative. Information is available at Carsondunlop.com. Where state law permits, home inspectors with the requisite qualifications are able to write certifications for real estate transactions to resolve concerns raised by title companies and lenders during the processing of sale transaction documentation.

Energy audits

There is also the growing field of energy conservation inspections, known more commonly as performing Energy Audits. This field has been slow to develop, but with the change of administration in Washington, D.C., and the new president’s focus on energy-related jobs, anticipation is growing that property owners will become more interested in improving the energy efficiency of their building and homes, and this will lead to an expediential growth in energy conservation inspections.

CMC Energy Services, an ASHI affiliate, made the first effort on a national basis to train inspectors and provide energy reviews of homes. Many home inspectors are participating in the “Home Energy Tune-UP®” inspection program. Information can be obtained at hometuneup.com.

Two housing-related energy conservation organizations are focused on developing more comprehensive inspection protocols and training energy auditors. This is happening, coincidentally with the federal government’s increasing interest in residential energy conservation. A new standard, known as the National Home Energy Audit Standard, has been adopted and can be found as Chapter 7 of the Mortgage Industry National Home Energy Rating Systems Standards at resnet.us.

Steve Baden, executive director of RESNET, taught the first course for home inspectors interested in becoming Home Energy Survey Professionals at last month’s InspectionWorld conference. The course was based on the recently adopted Standard and prepared the attendees to take the on-line, open-book certification exam.  Home inspectors can easily augment their services with energy audit skills through this RESNET course, designed for energy surveys of existing homes. Energy inspection equipment, such as infra-red cameras and blower door test apparatus, is becoming more affordable. Energy audit inspections will be a discipline attracting home inspectors as more clients and Realtors learn to appreciate the value of this service.

Why energy audits

Of all the good ideas being shared, I’ve decided that focusing more on energy audits will work best for my company. Within the next few years, if not sooner, I believe property owners will acknowledge the proposition that every home will benefit from an energy utilization and conservation inspection, and this field will blossom financially for the energy auditors who were there first.

The company of which I am a principal, HomeEnergyTeam, LLC, participated in this year’s InspectionWorld and is providing a full-scale business platform for home inspectors to enter the energy audit business in a cost-effective manner. Guidance is provided for home inspectors who are currently untrained, and experienced energy auditors can begin to obtain leads almost immediately. Inspectors can utilize existing contractor relationships to support marketing efforts that promote home and energy inspections. For more information on how you can grow your business and leverage marketing dollars, information is available at HomeEnergyTeam.com.

In addition, being in a home as an energy auditor provides the opportunity to cross-sell other services. If moisture problems are observed, bingo! there is a water infiltration consultation opportunity or a mold investigation. How about a radon test at a discount with every energy audit for homes that have not ever been tested for radon or not within memory? Add a safety and maintenance inspection for existing homeowners… The point is that every opportunity should be maximized. The number of inspections you perform may decline, but the average income per inspection can be increased through cross-selling. Energy audits are the front door to making this happen.

Ultimately, the current economic climate will force home inspectors to become better business people. By better budgeting and understanding costs, by managing advertising funds, developing new skills and by appreciating that every contact must be maximized — both in the quality of the services provided and, equally as important, in the quantity of different services offered home inspectors and their businesses will survive through this recessionary period and come out at the end stronger and more prosperous.

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IR – Special Service or Just Another Tool?

Where can you learn more about what services ASHI members are using to generate additional income? Some of ASHI’s most successful members share their personal experiences and technical knowledge on the ASHI Members Only discussion boards. If you’re considering adding Infrared technology to the services you offer, you’ll want to read the discussion under the heading “IR – Special Service or Just Another Tool” at
https://www.homeinspector.org/forum/t/1244.aspx.

Once you’re there, browse a little. See what you’ve been missing.

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